Submitted by Elba Lopes (elba.lopes@fecap.br) on 2018-06-04T20:35:32Z No. of bitstreams: 2 Ricardo Gastardeli Yamamoto .pdf: 408105 bytes, checksum: 3e481c7b8a30df5f5411d52772739961 (MD5) license_rdf: 0 bytes, checksum: d41d8cd98f00b204e9800998ecf8427e (MD5) / Made available in DSpace on 2018-06-04T20:35:32Z (GMT). No. of bitstreams: 2 Ricardo Gastardeli Yamamoto .pdf: 408105 bytes, checksum: 3e481c7b8a30df5f5411d52772739961 (MD5) license_rdf: 0 bytes, checksum: d41d8cd98f00b204e9800998ecf8427e (MD5) Previous issue date: 2018-02-27 / The objective of this study is to propose a typology of Finance content focused on entrepreneurial training in undergraduate courses. It is an exploratory research with qualitative data collection and the use of the Delphi technique, applied in two rounds with the participation of 27 specialists from the areas of Entrepreneurship and Finance. Among the findings, it was identified in order of relevance that the topics (i) Working capital, (ii) Management and projection of cash flows, (iii) Behavioral finance, (iv) Personal finance and entrepreneurship, (v) Risk management and (vi) Microcredit are among the most relevant contents for entrepreneurship training in Finance. The results of the research allow the following reflections: (i) the two most well-positioned contents in this study are also topics present in the literature and papers on the subject, (ii) the inclusion of new topics in the research exposed the relevance of contents until then still little explored, contributing with new perspectives and possibilities of studies on the subject. The findings of this study generate concrete recommendations for undergraduate-level Finance education programs. It is expected that this work will contribute by bringing to light a description of the current context of Finance education for entrepreneurship training and to provide educational institutions and professors a support to become more effective in teaching Finance for entrepreneurship training. / O objetivo deste estudo ?? propor uma tipologia de conte??dos de Finan??as voltada ?? forma????o empreendedora em cursos de gradua????o. Trata-se de uma pesquisa de natureza explorat??ria com levantamento qualitativo de dados e emprego da t??cnica Delphi, aplicada em duas rodadas com a participa????o de 27 especialistas das ??reas de Empreendedorismo e Finan??as. Entre os achados, identificou-se em ordem de relev??ncia que os t??picos (i) Capital de giro, (ii) Gerenciamento e proje????o de fluxos de caixa, (iii) Finan??as comportamentais, (iv) Finan??as pessoais e empreendedorismo, (v) Gerenciamento de risco e (vi) Microcr??dito figuram entre os conte??dos mais relevantes para a forma????o empreendedora em Finan??as. Os resultados da pesquisa permitem as seguintes reflex??es: (i) os dois conte??dos mais bem posicionados neste estudo tamb??m s??o t??picos presentes na literatura e trabalhos sobre a tem??tica, (ii) a inclus??o de novos t??picos na pesquisa exp??s a relev??ncia de conte??dos at?? ent??o ainda pouco explorados, contribuindo com novas perspectivas e possibilidades de estudos sobre o tema. Os achados deste estudo geram recomenda????es concretas para os programas de ensino de Finan??as em n??vel de gradua????o. Espera-se ainda que este trabalho contribua ao trazer ?? luz uma descri????o do atual contexto da educa????o em Finan??as para forma????o empreendedora e forne??a ??s institui????es de ensino e docentes, subs??dios para que se tornem mais eficazes no ensino de Finan??as para a forma????o empreendedora.

A Gestão de Riscos tem sido uma problemática bastante discutida nos últimos tempos. A necessidade de identificar, medir e controlar o grau de risco nas empresas tem aumentado na medida em que aumentam também as incertezas que circundam as organizações. Entretanto, a gestão de riscos tem sido muito discutida no ambiente de projetos, quando se busca avaliar os riscos associados a um projeto de investimento. Porém, apesar desta informação ser importante e necessária, atualmente se faz necessário ampliar as informações de risco, buscando identificar os riscos que afetam a empresa como um todo, focando em seus diferentes tipos de negócio. Neste contexto surge a Gestão de Riscos Corporativos (ou Enterprise Risk Management – ERM), metodologia que busca identificar, medir e controlar riscos de negócio e é o tema desta pesquisa. Para a Gestão de Riscos Corporativos já foram desenvolvidos modelos como o COSO (2007) e normas como a AS/NZS 4360 (1999) e a NBR ISO 31000 (2009), porém nestes modelos muita atenção é dada às etapas a serem desenvolvidas para uma gestão completa, sem associar claramente as ferramentas e conceitos que devem ser usados em cada etapa, bem como há um foco restrito aos aspectos quantitativos, havendo dificuldade para o tratamento de riscos classificados como qualitativos. Desta forma, este trabalho apresenta a construção de um Modelo Conceitual para Gestão de Riscos Corporativos, o qual foi validado através de um Estudo de Campo em duas empresas que possuem o processo de ERM relativamente estruturado. Como resultado gerouse um Modelo Preliminar, cujo principal objetivo é criar um conjunto de indicadores parciais e global que auxiliem os gestores a controlar os riscos aos quais seus negócios estão expostos, permitindo a comparação entre diferentes Unidades de Negócio (UN) de uma mesma organização. O Modelo Preliminar está apoiado em uma estrutura matricial de controle e é composto por seis fases: (i) Estruturação e Planejamento – focada em organizar o processo de Gestão de Riscos na empresa; (ii) Contexto de risco – cujo objetivo é identificar e ranquear os riscos aos quais as UNs estão expostas; (iii) Grau de exposição ao risco – fase que visa avaliar quanti e qualitativamente os riscos priorizados na fase anterior, buscando calcular os indicadores de riscos propostos, gerando o Grau de Risco de cada UN; (iv) Grau desejado de exposição ao risco – fase que busca identificar o grau de tolerância ao risco desejado pela empresa, com intuito de alinhar o grau de exposição calculado ao tolerado pela organização; (v) Tratamento dos riscos – fase onde os riscos críticos são identificados e ações de contingência são propostas para o ajuste do Grau de Risco em cada UN avaliada; e (vi) Monitoramento dos riscos – fase de gerenciamento contínuo dos riscos, onde responsabilidades de controle são definidas, visando um monitoramento horizontal dos riscos, comparando as diferentes UNs da organização. Este Modelo Preliminar foi aplicado em uma empresa de grande porte do setor de construção civil, sendo avaliadas suas duas UNs. Durante a aplicação, todas as seis fases foram realizadas, sendo possível calcular o Grau de Risco de cada UN, definindo ações contingenciais para os riscos mais críticos, estruturando um processo de controle formal e alinhado às expectativas da organização. Por fim, foi gerado um modelo final, chamado MIGGRI – Modelo para Identificação e Gerenciamento do Grau de Risco de Empresas, com algumas modificações realizadas devido à aplicação prática, concluindo-se que o modelo desenvolvido preenche as lacunas identificadas na literatura sobre Gestão de Riscos, contribuindo para esta ascendente área de pesquisa. / Recently, Risk Management issues have been widely discussed. There is an increasing need to identify, measure and control the levels of risk within enterprises as the levels of uncertainty that surround them also rise. Risk management, however, is commonly discussed at the level of projects, when the aim is to assess the risks associated with an investment project. Notwithstanding the importance and necessity of such information, nowadays it is necessary to expand the information on risks, attempting to identify the risks that affect the enterprise as a whole, focusing on its different types of business. In this context there arises the concept of Enterprise Risk Management – ERM, methodology whose objective is to identify, measure and control business risks and which is the central theme of the present research. Models such as COSO (2007) and regulations such as AS/NZS 4360 (1999) and ISO 31000 (2009) have already been developed for Enterprise Risk Management; however, in these models much attention has been given to the steps that must be developed for a complete management without clearly associating the tools and concepts that must be used in each step, and there is also a focus restricted to the quantitative aspects, while there is difficulty in the assessment of risks classified as qualitative. Therefore, this research aims at presenting the construction of a Conceptual Model for Enterprise Risk Management, validated by means of a Field Study in two companies that employ the ERM process in a relatively structured form. This resulted in a Preliminary Model, whose main objective is to create a set of partial and global indicators that aid managers in controlling risks to which their businesses are exposed, allowing for a comparison between different Business Units (BU) in a same organization. The Preliminary Model is supported by a control matrix structure and is composed of six stages: (i) Structuring and Planning – focused on organizing the Risk Management process in the company, (ii) Risk Context – whose objective is to identify and rank the risks to which the BUs are exposed; (iii) Risk Exposure Level – aims to assess quantitatively and qualitatively the risks prioritized at the previous stage, attempting to calculate the proposed risk indicators, generating the risk level (RL) of each BU; (iv) Intended risk level – this stage aims to identify the level of tolerance to risk intended by the company, having the intention of aligning the calculated RL to what the organization tolerates; (v) Treat the risks – stage in which the critical risks are identified and contingency measures are proposed for the reduction of the RL of each BU assessed; and (vi) Risk monitoring – stage of constant risk management, in which control responsibilities are defined in regards to a horizontal risk monitoring, comparing the different BUs of the organization. This Preliminary Model was applied in a large-sized company in the construction industry, and its two BUs were assessed. During the application, the six stages were carried out, and it was possible to calculate the risk level of each BU, to define the contingency measures for the most critical risks, and to structure a formal control process aligned with the expectations of the organization. Finally, a final model was generated, called MIGGRI – Modelo para Identificação e Gerenciamento do Grau de Risco de Empresas (Model for the Management and Identification of Risk Level in Enterprises), with some alterations due to the practical application, concluding that the model developed fills the gaps identified in the literature on Risk Management, thus contributing to this arising field of research.

Este documento tiene como primer objetivo mostrar los diferentes métodos de valoración de empresas estudiados en las últimas décadas. No obstante, el trabajo profundiza en la valoración de pequeñas empresas como tema central, debido a que hasta la actualidad no se las ha investigado con el mismo interés que a empresas corporativas, lo que pone en evidencia una falta de consenso. Así, el segundo objetivo es ofrecer al lector una fuente de información, a manera de compendio inicial, que motive a investigar el tema, realizar estudios específicos, servir de materia de tesis académicas, entre otras contribuciones. El primer capítulo de este trabajo aborda el tema partiendo de la definición del concepto de valor, y sustenta la diferencia entre valor y precio. Asimismo, en él se realiza una reseña de la evolución del estudio de valoración de empresas, se explica qué es una pequeña empresa en el marco nacional e internacional, y, finalmente, se aborda la valoración de pequeñas empresas en específico. Por su parte, el segundo capítulo describe los métodos de valoración de empresas más utilizados y aceptados, y presenta sus ecuaciones y guía detallada de uso. El tercer capítulo expone errores encontrados en valoración de empresas; el cuarto capítulo describe seis metodologías de valoración de pequeñas empresas, y presenta sus respectivas ecuaciones y los pasos a seguir para su uso. Finalmente, el quinto capítulo se enfoca en un tema de similar importancia, la estimación del costo de capital en pequeñas empresas, el cual genera, inclusive, mayor controversia. / The first objective of this document is to show the different Company valuation methods studied in the last decades. However, the work looks into the valuation of small business, as a central topic, because until now they have not been investigated with the same interest than the Corporative Companies, which evidences a lack of consensus. Thus, the second objective is to offer a source of information to the reader, as an initial summary, that motivates to investigate the topic, do specific studies, serve as a topic for Academic Thesis, among other contributions. The first chapter of this paper approaches the topic starting from the definition of the concept of the value and supports the difference between value and price. Moreover, there is an outline of the evolution of the study of valuation of Companies, it is explained what is a small business in the national and international framework and, finally, the valuation of specific small business is approached. On its part, the second chapter describes the most used and accepted companies’ valuation methods and presents its equations and detailed user guide. The third chapter shows mistakes found in companies’ valuation; the fourth chapter describes six methodologies of the valuation of small business and shows its respective equations and the steps to follow for its use. Finally, the last chapter focuses on a topic of similar importance, the estimation of the capital cost in small companies that generates, even, more controversy. / Trabajo de Suficiencia Profesional

In the aftermath of the Great Recession of 2007-2009, banking executives feared the impact of increased capital reserve requirements for losses from mortgage defaults. One reason was that home price declines during the Great Recession precipitated mortgage defaults, which increased the percentage of foreclosures as well as accelerated negative equity, and default. The purpose of this correlational study, grounded in Fishbein's expectancy of value and Vroom's expectancy theories, was to examine the relationship between the independent variables of homeowner's equity, rental cash flow value, and recourse, and the dependent variable, default mortgage status. Archival data comprised a sample of 408 single family residences in Alameda County, California, and Shelby, Fayette, and Tipton Counties in Tennessee. The results of the binary logistic regression model indicated the model was a good fit to predict a significant relationship between the variables (Ï?2 = 3.490, p = 0.322, df = 3). The findings did not reveal a significant relationship between homeowner's equity, rental cash flow value, recourse, and default mortgage status. Therefore, the independent variables did not predict mortgage default status. However, a minor relationship was found between homeowner's equity (p = 0.215), rental cash flow value (p = 0.215), and default mortgage status. A non-significant relationship between the independent variables and default mortgage status indicated that factors other than the study variables influenced default mortgage status. Advocates for fair housing laws may use study findings to encourage lenders to change lending policies to reduce the risk of default and increase stability in local communities, which may result in potential positive social change.

<p>När en kassaflödesvärdering genomförs prognostiseras företagets värde genom att summera framtida kassaflöden och diskontera dem med företagets kapitalkostnad. På grund av att prognostiserade kassaflöden är uppskattningar inför framtiden karaktäriseras en värdering alltid av hög osäkerhet. Till underlag för prognoserna används en omfattande mängd information. För att ett tillförlitligt värde ska kunna beräknas är det viktigt att relevant och pålitlig information samlas in och hanteras på ett effektivt sätt. I dagsläget är det problematiskt att hantera omfattande mängder information och ett tillräckligt datorstöd saknas. Syftet med den här uppsatsen är att konstruera ett förslag till en databas till stöd för informationshantering vid kassaflödesvärdering.</p><p>Uppsatsen är skriven utifrån en kvalitativ metod. En omfattande referensram presenteras till syfte att ge läsaren möjlighat att bekanta sig med både kassaflödesvärderingar och databaser. Vidare används ett fallföretag för att exemplifiera hur en kassaflödesvärdering går till, vad den kännetecknar och vilka informationshanteringsbehov som föreligger.</p><p>Uppsatsens resultat består av en konceptuell samt en logisk och fysisk databasmodell utvecklad i Microsoft Access. Den logiska och fysiska databasmodellen består av 20 tabeller där relationerna sammankopplar olika faktorer som påverkar företagets kassaflöde. Möjligheter som databasen ger upphov till är bland annat en förenklad härledning av företagets prognostiserade värde. Vidare kan en större mängd information lagras och hanteras i samband med värderingen. En databas kan också skapa en högre grad av flexibilitet och möjlighat att anpassa värderingen till företagets specifika dynamik. Det finns också möjlighet att lättare identifiera företagets risker och hur riskerna påverkar kassaflödena. Tänkbara problem med databasen är risk för lagring av irrelevant information och att det kan vara problematiskt att påvisa en tillräcklig validitet för databasen.</p><p>I uppsatsen argumenteras också för att det finns möjlighet att även använda den föreslagna databasen vid kassaflödesvärdering av andra företag. Det är dock viktigt att påpeka att flera attribut i den föreslagna databasen är specifika för fallföretaget och kan bli irrelevanta för andra företag.</p> / <p>When a discounted cash flow valuation is performed, the value of the asset is determined by summarising the predicted cash flows and discounting them with the cost of capital. Due to the fact that the future cash flows are predictions, a valuation is always affected by uncertainty. In order to improve the accuracy of the predictions, an extensive amount of information is used. To be successful, it is important to collect reliable and relevant information and manage the information in an efficient way. At present it is difficult to gather and manage information and sufficient computer aid is missing. The purpose of this master thesis is to construct a proposal for a database to support information management for discounted cash flow valuation of corporations. The thesis is conducted with a qualitative research method. An extensive frame of reference is presented in order to give the reader the possibility to get to know both databases and cash flow valuations.</p><p>The result of the study is a conceptual model as well as a logical and physical database model. The proposed database consists of 20 tables where the database relationships connect the value creating factors of the corporation. Possible positive effects of the database are simplified deriving of the corporate value and capacity to store and manage greater amounts of information in a logical manner. The database can also improve the flexibility and adjust the valuation to the dynamic nature of the corporation. Furthermore, the identification of risks and risk factors can be improved. A potential problem with the database is the risk of storing irrelevant information. It can also be difficult to prove a sufficient validity for the database since no user valuation has been carried out.</p><p>In the thesis, the author also argues that the database can be utilised for discounted cash flow valuation of any corporation. However, some tables, attributes and relationships need to be changed and adjusted to the specific nature of the corporation.</p>

Background: Over the last three years uranium prices have soard from US $14 per pound (lb) to the current price of US $120/lb and this rapid incline of the commodity have created a boom within the uranium prospecting and min-ing industry. There are currently 435 nuclear reactors all over the world and these reactors demand 180 millions of pounds of uranium each year to run at full production. Currently the uranium mining industry only sup-plies 110 million pounds of the demanded quantity. The remaining 70 mil-lion pounds are coming from secondary sources such as decommissioned nuclear warheads and other sources. Market estimations say that the sec-ondary sources will only cover the shortage up until around 2012 then primary sources have to supply almost the whole quantity demanded. These factors imply that some sort of analysis model for uranium mining companies would be needed. Purpose: The purpose of this report is to valuate three companies within the ura-nium industry and to establish if the current market value is coherent with the fundamental value of these companies. The authors will propose a valuation model that could be used when valuating companies within the uranium industry. Method: A qualitative method has been used in order to value three companies within the uranium mining business that are fairly large players on the market. The valuation of these companies is based upon a discounted cash flow analysis, a relative PV valuation and relative valuation. The compa-nies included in the report are corporations that are quoted at Toronto Stock Exchange and they have started mining uranium. Data have been collected through annual reports and the companies Internet pages. Other secondary information such as valuation theories has been collected from academic search engines and books on the subjects. Conclusions: The current market values of uranium mining companies are not coherent with the actual fundamental values according to the authors. Both funda-mental and a comparative approach could be used when valuing these companies and the most important part in the valuation is to try and fore-cast the commodity price and then to estimate the companies possible mining reserve/extractable resources.

När en kassaflödesvärdering genomförs prognostiseras företagets värde genom att summera framtida kassaflöden och diskontera dem med företagets kapitalkostnad. På grund av att prognostiserade kassaflöden är uppskattningar inför framtiden karaktäriseras en värdering alltid av hög osäkerhet. Till underlag för prognoserna används en omfattande mängd information. För att ett tillförlitligt värde ska kunna beräknas är det viktigt att relevant och pålitlig information samlas in och hanteras på ett effektivt sätt. I dagsläget är det problematiskt att hantera omfattande mängder information och ett tillräckligt datorstöd saknas. Syftet med den här uppsatsen är att konstruera ett förslag till en databas till stöd för informationshantering vid kassaflödesvärdering. Uppsatsen är skriven utifrån en kvalitativ metod. En omfattande referensram presenteras till syfte att ge läsaren möjlighat att bekanta sig med både kassaflödesvärderingar och databaser. Vidare används ett fallföretag för att exemplifiera hur en kassaflödesvärdering går till, vad den kännetecknar och vilka informationshanteringsbehov som föreligger. Uppsatsens resultat består av en konceptuell samt en logisk och fysisk databasmodell utvecklad i Microsoft Access. Den logiska och fysiska databasmodellen består av 20 tabeller där relationerna sammankopplar olika faktorer som påverkar företagets kassaflöde. Möjligheter som databasen ger upphov till är bland annat en förenklad härledning av företagets prognostiserade värde. Vidare kan en större mängd information lagras och hanteras i samband med värderingen. En databas kan också skapa en högre grad av flexibilitet och möjlighat att anpassa värderingen till företagets specifika dynamik. Det finns också möjlighet att lättare identifiera företagets risker och hur riskerna påverkar kassaflödena. Tänkbara problem med databasen är risk för lagring av irrelevant information och att det kan vara problematiskt att påvisa en tillräcklig validitet för databasen. I uppsatsen argumenteras också för att det finns möjlighet att även använda den föreslagna databasen vid kassaflödesvärdering av andra företag. Det är dock viktigt att påpeka att flera attribut i den föreslagna databasen är specifika för fallföretaget och kan bli irrelevanta för andra företag. / When a discounted cash flow valuation is performed, the value of the asset is determined by summarising the predicted cash flows and discounting them with the cost of capital. Due to the fact that the future cash flows are predictions, a valuation is always affected by uncertainty. In order to improve the accuracy of the predictions, an extensive amount of information is used. To be successful, it is important to collect reliable and relevant information and manage the information in an efficient way. At present it is difficult to gather and manage information and sufficient computer aid is missing. The purpose of this master thesis is to construct a proposal for a database to support information management for discounted cash flow valuation of corporations. The thesis is conducted with a qualitative research method. An extensive frame of reference is presented in order to give the reader the possibility to get to know both databases and cash flow valuations. The result of the study is a conceptual model as well as a logical and physical database model. The proposed database consists of 20 tables where the database relationships connect the value creating factors of the corporation. Possible positive effects of the database are simplified deriving of the corporate value and capacity to store and manage greater amounts of information in a logical manner. The database can also improve the flexibility and adjust the valuation to the dynamic nature of the corporation. Furthermore, the identification of risks and risk factors can be improved. A potential problem with the database is the risk of storing irrelevant information. It can also be difficult to prove a sufficient validity for the database since no user valuation has been carried out. In the thesis, the author also argues that the database can be utilised for discounted cash flow valuation of any corporation. However, some tables, attributes and relationships need to be changed and adjusted to the specific nature of the corporation.

The dividend payout policy is one of the most debated topics within corporate finance and some academics have called the company’s dividend payout policy an unsolved puzzle. Even though an extensive amount of research regarding dividends has been conducted, there is no uniform answer to the question: what are the determinants of the companies’ dividend payout ratios? We therefore decided to conduct a study regarding the determinants of the companies’ dividend payout ratios on large and medium cap on Stockholm stock exchange. The purpose of the study is to determine if there is a relationship between a number of company selected factors and the companies’ dividend payout ratios. A second purpose is to determine whether there are any differences between large and medium caps regarding the impact of the company selected factors. We therefore reviewed previous studies and dividend theories in order to conclude which factors that potentially could have an impact on the companies’ dividend payout ratios. Based on the literature, we decided to test the relationship between the dividend payout ratio and six company selected factors: free cash flow, growth, leverage, profit, risk and size. The data used in the research are secondary data collected during a time period of five years, between 2006 and 2010. The study follows a quantitative research method with a deductive approach and we have based the study on four dividend theories: the dividend irrelevance theory, the bird in hand theory, the signaling theory and the agency theory. In order to determine whether there is a relationship between the companies selected factors and the dividend payout ratio we conducted both an Ordinary least square (OLS) and a Tobit regression. Multicollinearity tests were also conducted in order to ascertain that no multicollinearity affected the results of the study. The results indicate that some of the company selected factors have an impact on the companies’ dividend payout ratios and there are some differences between large and medium caps. The dividend payout ratios of large caps have a significant relationship to free cash flow, growth and risk. While the dividend payout ratios of medium caps have a significant relationship to free cash flow, leverage, risk and size.

The cash conversion cycle which is a very important indicator measures how efficient a company manages its working capital. This indicator clearly points the effect of a company business operation from the cash flow point of view. Basically, it is an excellent systematic financial system that includes the function which will fully describe the important parts of daily operation behavior of a company. According to this study, the cash conversion cycle can completely show the skeleton of working capital management and its own business operation character of a company. By using the cash conversion cycle as a base, the model of working capital management cycle is created from a system dynamics method. A close-tight and highly dependent relationship between revenue and profit growth rate with the cash conversion cycle is illustrated in this model by inputting some criteria. The illustration shows: 1.The cash conversion cycle will affect a company¡¦s profitability. 2.The cash conversion cycle will affect Cash flow shortage risk. 3.The cash conversion cycle focuses on the period of time between ¡§payment and receiving¡¨. When a company¡¦s revenue increases substantially but profit is not increased accordingly, the length of time between payments and receiving shows a gap is created by increasing cash payments on production but less increasing or decreasing cash receiving on sales. This gap will gradually cause cash outflow greater than cash inflow. Although the account indicates that the company is profitable, the company business operation will still suffer from the cash shortage eventually. Of course, the company¡¦s strong refinancing ability may solve this problem. However, if the company has problem of refinancing and increasing its operation capital, the raising cash outflow from the gap will trigger off a counterintuitive of ¡§bankruptcy from the technical insolvency ¡§.

Abstract With the critical development trend of industry of the world, TFT-LCD industry, following the footstep of semi-conductive industry, has become an important leading industry of Taiwan to the economic policy of the Government. The ¡§Two Trillion Double Star¡¨plan pro- -moted by Industrial Development Bureau fo Taiwan intends to push up the production values of the two industries, semi-conductive and flat panel photonic displayer, to exceed NT$ 1 trillion respectively in 2006. This plan also promotes digital contents and biotechnical industry to be two star industries with high potentials of development. Therefore, TFT- LCD industry is undoubtedly the core industry of the next wave of econo- mic growth in Taiwan. According to the distinguishing characteristics of capital and technology density, short-lived productive cycle, and variable productive technique in TFT-LCD industry, cash flow out of investment activities became the key point to promote the competitiveness with the continuously overcharge in the next generation panel field.In addition, the investors would find that the TFT-LCD panel factories have no ability to support the cash flow out which invested in equipment if they do not ask for finance. In this paper, we attempt to investigate the relationship between variation of cash flow in operation, investment, and finance activities and potential risk of operation in enterprise by financial statement in TFT-LCD industry. In addition, this dissertation commence with ROE and development from Du-Pont Formula. Our research decomposes ROE to fundamental elements in enterprise step by step, such as the construction of cost and expense and the risk of business. Furthermore, we afford a referable approach to estimate performance of companies by Du-Pont Formula. Key Words¡G Thin Film Transistor (TFT), Liquid Crystal Display (LCD),Cash Flow, Risk, Risk Management, Du Pont Equation, Du Pont Ratio.